The Home Depot, Inc. (HD) vs Microsoft Corporation (MSFT)
A side-by-side comparison of The Home Depot, Inc. and Microsoft Corporation across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of September 11, 2026. Differences are shown without an overall score or investment verdict.
Different business models: HD is classified in Consumer Cyclical; MSFT is classified in Technology. Margin, capital intensity, and valuation differences should be interpreted in that sector context.
HD
The Home Depot, Inc.
$308.74Consumer CyclicalDelayed quote: Sep 11, 2026, 4:00 PM EDT
MSFT
Microsoft Corporation
$495.63TechnologyDelayed quote: Sep 11, 2026, 4:00 PM EDT
Total return — HD vs MSFT
growth of $100 · dividends reinvested · last 10yHD +197.3% (+11.5%/yr)MSFT +874.1% (+25.6%/yr)MSFT compounded faster over this window
HD MSFT
HD vs MSFT: by the numbers
- •MSFT is the larger company ($3.68T vs $307.85B market cap).
- •HD trades at the lower trailing earnings multiple (21.61 vs 27.61 P/E), one valuation lens rather than an overall verdict.
- •MSFT converts more revenue to profit (40.31% vs 8.41% net margin).
- •MSFT grew revenue faster over the past five years (14.57% vs 3.21% CAGR).
- •HD pays the higher dividend yield (3.03% vs 0.74%).
Metrics side by side
Valuation
| Metric | HD | MSFT |
|---|---|---|
| P/E ratio | 21.61 | 27.61 |
| Forward P/E | 20.57 | 25.13 |
| P/S ratio | 1.82 | 11.09 |
| P/B ratio | 18.53 | 8.32 |
| EV / EBITDA | 14.80 | 19.55 |
| FCF yield | 4.90% | 1.82% |
Profitability
| Metric | HD | MSFT |
|---|---|---|
| Gross margin | 33.21% | 67.94% |
| Operating margin | 12.43% | 46.78% |
| Net margin | 8.41% | 40.31% |
| ROE | 85.62% | 30.23% |
| ROIC | 18.80% | 20.90% |
Dividends
| Metric | HD | MSFT |
|---|---|---|
| Dividend yield | 3.03% | 0.74% |
| Payout ratio | 64.80% | 20.28% |
Growth (annualized)
| Metric | HD | MSFT |
|---|---|---|
| Revenue CAGR (5Y) | 3.21% | 14.57% |
| EPS CAGR (5Y) | -2.18% | 17.26% |
| FCF CAGR (5Y) | -2.52% | 3.60% |
| Total return CAGR (5Y) | 0.90% | 11.66% |
Frequently asked
- Which has the lower trailing P/E, HD or MSFT?
- HD has the lower trailing P/E: HD trades at 21.61 and MSFT at 27.61. P/E is one valuation measure and does not by itself establish which business is cheaper.
- Which has grown faster, HD or MSFT?
- Over the past five years, MSFT grew revenue faster — HD at a 3.21% CAGR versus MSFT at 14.57%.
- Does HD or MSFT pay a bigger dividend?
- HD yields 3.03% and MSFT yields 0.74% based on trailing dividends and the latest price.
- Is HD or MSFT more profitable?
- MSFT runs the higher net margin — HD at 8.41% versus MSFT at 40.31%.
- How have HD and MSFT total returns compared?
- Over the past 10 years, HD delivered 11.81% and MSFT delivered 25.72% annualized total return. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
Home Depot P/E ratioMicrosoft P/E ratioHome Depot dividend yieldMicrosoft dividend yieldHome Depot ROEMicrosoft ROEHome Depot operating marginMicrosoft operating marginHome Depot revenue growthMicrosoft revenue growthHome Depot free cash flowMicrosoft free cash flow
Home Depot & Microsoft appear in these rankings
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Figures are sourced from reported fundamentals and the latest end-of-day price. This comparison is informational only and is not investment advice. Past performance does not predict future results. See our methodology. Compiled by TGMCharts Research · data verified September 11, 2026.